Knowledge Centre

Key Statistics

$ Billion*

Total Defence Budget (FY 2019-20)

$ Billion*

Capital Expenditure Allocation (FY 2019-20)

$ Billion*

Revenue Expenditure Allocation (FY 2019-20)


Growth in Expenditure in 2019-20 over 2018-19

Sector Snapshot

India maintains the second largest standing armed forces in the world by size, is the eighth largest spender on defence and the second largest importer of defence equipment (SIPRI, March 2019). Considering the size of Indian Defence Forces, and their modernisation needs, India has maintained a consistent defence spending pattern over the last decade to build defence capability, as also its defence industrial base.

8 – 10 % CAGR

Steady growth


Micro, Small and Medium Enterprises (MSMEs)


FDI permitted with Government approval

Defence Industrial Licences issued till end of FY 2018-19

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Latest News

  • Russia Offers Three Refurbished Kilo-Class Submarines to India?

    Russia has offered three refurbished Kilo-class diesel-electric attack submarines to the Indian Navy, reports the Diplomat According to the report, Russia’s JSC United Shipbuilding Corporation (USC) has also proposed a significant refurbishment on three of the Indian Navy’s existing Project 877EKM Kilo-class submarines, known locally as Sindhughosh-class.

  • S-400 Deal: From Russia's S-400 to Israel's Barak-8 Missiles: How India is Fortifying Its Defence

    Israel Aerospace Industries (IAI) announced that it has been awarded an additional $777-million mega contract for supply of Barak-8 missile defence system - known in India as LRSAM - for seven ships of the Indian Navy. The contract was entered with state-owned company Bharat Electronics Limited (BEL), which serves as the main contractor in the project.

  • Karnataka Exempts Aerospace and Defence Firms from Covid-19 Lockdown

    In a decisive measure to protect Karnataka based companies that manufacture parts and systems for the assembly lines of global aerospace and defence (A&D) majors like Boeing and Airbus, the state government has exempted local A&D manufacturers from the nationwide anti-Covid-19 lockdown and permitted them to resume manufacturing activities with immediate effect.

  • Lockheed Awarded $512M Bulgaria F-16 Block 70 FMS Contract

    Lockheed Martin's aeronautics segment has won a potential $512M foreign military sales contract with the U.S. Air Force to build F-16 Fighting Falcon jets for the Bulgarian government. Bulgaria conducted a competition for the aircraft procurement effort and ordered eight F-16s in Block 70 configuration, the Department of Defense said Thursday.

  • Lockheed Martin Gets Pentagon Contract for Bulgarian F-16s

    Bulgaria’s combat aircraft acquisition is now moving to the production phase, as the U.S. government has awarded Lockheed Martin a $512 million contract for manufacture of eight F-16V Block 70s. Bulgaria’s eight F-16 Block 70s will cost $512 million, so $64 million each.

  • IAF Says No to Russia’s Engine Swap Offer for Its Su-30MKI Fleet

    Russian Air Force which had decided that the fresh batch of 36 Su-30SM fighter jets will come equipped with AL-41F-1S engines from 2021 onwards to the levels that match those of the Su-35 which carries the same engine and had offered the same to India for its fleet of 272 Su-30MKI under its ” Super-Sukhoi” modernization program under consideration by IAF with Russia has been turned down.

  • The Indian Navy’s Potent Conventional Submarine Capability

    India is currently planning a fleet of nuclear powered submarines. But unlike other nuclear navies, India will not go all-nuclear. Instead they they will be complemented by 6 locally-built Kalvari Class conventionally powered boats and 6 of a follow-on Project-75I type.

  • Pandemic Shadow on Defence Industry Deals

    The mounting anxiety and steadfast focus on the proliferating coronavirus pandemic has clearly eclipsed the assortment of material contracts that India’s Ministry of Defence (MoD) has confirmed over the past fortnight, alongside numerous others which are imminent.

  • BAE Awarded $99M to Produce Missile Launching System Canisters for Navy, Japan

    BAE Systems has received a two-year, $99.3M contract modification to supply the U.S. Navy and Japanese government with canisters designed for a naval missile launcher platform. The company's land and armaments unit will provide MK 41 Vertical Launching System canisters and ancillary hardware under the firm-fixed-price modification, the Department of Defense said Tuesday.

  • Will It Turn Out to be TEDBF/ORCA vs AMCA for IAF?

    Twin-engine Medium Class Omni-Role Combat Aircraft (ORCA) or Twin Engine Deck Based Fighter (TEDBF) program born out of the necessity of the carrier-based requirements of the Indian Navy after it rejected plans to develop a single-engine fighter jet based on the LCA-Navy Mk2 concept which was rejected by the Navy due to various reasons but the questions remains will IAF will be part of the project which is not planned by it?

  • Lockheed Martin Speeds up Payments to Suppliers Amid Coronavirus Slowdown

    Defense contractor Lockheed Martin Corp said on that it would advance more than $50 million to suppliers hurt by a sharp economic slowdown caused by efforts to stop the coronavirus. Reuters had reported last week that the Pentagon was increasing the amount of interim payments, known as progress payments, to defense contractors. The largest contractors were to get payments of 90% as they work to complete projects.

  • Northrop Grumman Moves to LW30 PROX Qualification, M-ACE CUAS Testing

    Northrop Grumman Defense Systems has completed US government testing of its programmable Light Weight 30 mm Proximity Sensing Ammunition (LW30 PROX) round, and is moving towards qualification and fielding of the round to US Army

  • The Army’s Next Attack-Reconnaissance Helicopter is Coming into Focus

    The U.S. Army has chosen two competitors — the Bell Textron 360 Invictus and the Sikorsky Raider X — to develop test models of an attack/reconnaissance helicopter to replace some Cold War-era rotorcraft.The Army Future Vertical Lift office on Wednesday announced that two vendors will build and test designs for the next phase of its Future Attack and Reconnaissance Aircraft, or FARA, The final decision is expected in FY 2024.

  • Raytheon Bags S.Korea’s RAM Guided Missile Deal

    The Pentagon awarded Raytheon $18.3 million on Friday for work on South Korea’s Rolling Airframe Missile (RAM) Mod 5 Guided Missile Launching System. “Raytheon Missile Systems, Tucson, Arizona, is awarded an $18.3 million modification to previously awarded contract for fiscal 2020 Navy and Foreign Military Sales (FMS) funds to Korea for Rolling Airframe Missile Mod 5 Guided Missile Launching System requirements.

  • Mig-35 offered with New AESA Radar and additional features to India – Indian Defence Research Wing

    RSK MiG Corporation is offering India it’s Mikoyan MiG-35 fighter jet with a new AESA radar which was unveiled for the first time at MAKS 2019 international air show.

  • Spanish Shipbuilder Reaches Out To Indian Companies As Part of Submarine Bid

    Navantia was among the companies shortlisted for the Project 75I program. A Spanish shipbuilder has announced plans to hold an industry event on April 21 as part of its campaign to sell six advanced submarines to the Indian Navy Navantia, which is regarded as the fifth-largest shipbuilder in Europe, is offering its S-80 Plus submarine design to the Indian Navy as part of the latter's Project-75I programme.

  • Sikorsky Secures $125M Navy Contract for Lot 5 CH-53K Production Items

    Lockheed Martin's Sikorsky subsidiary has been awarded a $125.4M contract from the U.S. Navy to obtain long-lead materials needed to manufacture a fifth batch of CH-53K heavy-lift helicopters. The advance acquisition contract will fund long lead items for seven lot 5 low-rate initial production units of the King Stallion platform, the Department of Defense said Thursday.

  • UTC, Raytheon deal wins U.S. antitrust approval, with divestitures

    The U.S. Justice Department has approved United Technologies Corporation’s (UTX.N) planned merger with Raytheon Co (RTN.N), subject to conditions, the agency said on Thursday. UTC agreed in June to combine its aerospace business with U.S. contractor Raytheon and create a new company worth about $121 billion, in what would be the sector’s biggest ever merger.

  • Raytheon, Aerojet Ink $1B, 5-Year Standard Missile Deal

    Raytheon Missile Systems has signed a $1 billion deal with Aerojet Rocketdyne for provision of Aerojet Rocketdyne’s propulsion systems for Raytheon’s Standard Missiles (SM) for the next five years, Raytheon announced today.The agreement is designed

  • IAF’s Il-78MKI Aerial Tankers to Get New Engines and Avionics and Additional AWACS

    As per acquisition planned by the airforce for the year 2020-21, IAF plans to upgrade avionics of the Six Il-78MKI aerial refueling tanker based on the Il-76 strategic air-lifter and also re-engine them with the modern Aviadvigatel PS-90A-76 engine thus replacing the original Aviadvigatel D-30KP2 engines currently powering them.

Industry Voice

Customer Testimonails
Mr. Baba N Kalyani Immediate Past President, SIDM Chairman & Managing Director Bharat Forge Ltd

Make in India is a priority, and defence is a focus sector. The role for SIDM in this context is cut out; it is to focus on indigenisation, R&D, connecting industry, academia and research institutions, in addition to facilitating participation of small and medium scale industries in defence production.

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Customer Testimonails
Mr. Jayant D. Patil President, SIDM and Member of Board & Whole - time Director (Defence, L&T-NxT)

SIDM has been created to act as the single point of contact between the industry and the government. SIDM endeavours to work closely with the government on policy related issues, collaborate with experts from the industry, academia, R&D institutions, and through this, bridge the gap between the armed forces and the industry. SIDM also provides thought leadership, facilitates dialogue, convergences and consensus to resolve policy related issues and aid the flagship Make in India campaign.

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